An accurate, complete, and timely view of your currency exposures. The first step in managing currency risk is to identify where you are exposed. Everywhere you have a balance sheet or income statement item in a currency other than your reporting currency, you are exposed to currency risk. The second step is to decide if that level of risk is acceptable, and if not, how you’re going to manage it.
Not having that complete, accurate, and timely view of FX exposure is becoming increasingly costly; according to FiREapps’ most recent quarterly impact report, U.S.-based multinationals saw losses of $3.67 billion in the first quarter of 2013 – and those were just the losses companies quantified.
In May GTNews featured an article about our work with Hubbell, which exemplifies how FiREapps can help companies new to international business manage currency risk as they rapidly expand into new markets. When they came to us, Hubbell was experiencing unacceptable FX volatility. Here is FiREapps did.